8K Miles Software Services Ltd Management Discussions.

A detailed Report on Management Discussions and Analysis is given below as required under Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015.

Industry overview

Information Technology (IT) spending of companies has consistently improved over the last decade, regardless of global economic outcomes and the size of the organization. Enterprise IT has observed a rising trend in consumption, right from an individual business unit level demand to company-wide requirements. Management teams are cognizant of the organizationwide impact of IT and pay greater attention to the IT component of business strategy. Evolving IT technologies have driven disruptions in business models, leading to vast changes in revenue channels and operating structures of various industry verticals such as healthcare, retail, banking, education and media.

According to Gartners latest forecast, worldwide IT spending is projected to total $3.79 trillion in 2019, an increase of 1.1 percent from 2018. The shift of enterprise IT spending from traditional (non-cloud) offerings to new, cloud-based alternatives is continuing to drive growth in the enterprise software market. In 2019, the market is forecast to reach $427 billion, up 7.1 percent from $399 billion in 2018. The largest cloud shift has so far occurred in application software. However, Gartner expects increased growth for the infrastructure software segment in the near-term, particularly in integration platform as a service (iPaaS) and application platform as a service (aPaaS). IT Services is also expected to grow to 3.5% driven by strong growth in digital engagements, particularly cloud adoption.

2018 Spending 2018 Growth(in %) 2019 Spending 2019 Growth(in %) 2020 Spending 2020 Growth(in %)
Data Center Systems 210 15.5 204 -2.8 207 1.7
Enterprise Software 399 9.3 427 7.1 462 8.2
Devices 667 0.3 655 -1.9 677 3.5
IT Services 982 5.5 1016 3.5 1065 4.8
Communications Services 1489 2.1 1487 -0.1 1513 1.7
Overall IT 3747 4.0 3790 1.1 3925 3.6

Source Gartner (April2019)

Cloud Computing

In simple terms, cloud computing is the ability of storing and accessing data as well as run IT applications over the internet. The main advantage of this technology, over storing and running applications on a local server, is that computing can be made available on-demand. This means organizations can rent computing infrastructure, pay for only what they have used and save cost. However, this also means not only multiple IT applications can share the infrastructure but also multiple organizations across the world. On such a shared infrastructure, in order for organizations to protect their data and prevent security breaches, cloud computing requires protection both during while its static on the cloud and intransit while accessing from the Cloud. Increasing public cloud usage with security enhancements such as digital watermarking techniques, helps augment revenue for clients and in turn, the cloud service providers.

8K Miles is able to consistently see the revenue growth over the years as a result of spending on cloud solutions as part of a companys overall IT budget has grown year-on-year. Cloud computing has emerged as the preferred partner for various IT use cases, owing to the bundled opportunities that it opens up across storage, analytics, collaboration and marketing, among others. Cloud allows organizations to optimize costs and improve operations. The cloud business model supports on- demand, internet-based IT services that offer huge economies of scale.

Healthcare Cloud Solutions

Highly regulated industries like healthcare and life science face major compliance challenges while embracing cloud transformation. It is primarily due to the large amount of sensitive data at stake. Organizations face many Health Insurance Portability and Accountability Act (HIPAA; 1966) regulatory requirements when it comes to cloud as not all solutions can meet the needs required for health data and Protected Health Information (PHI). Thus, there is a constant need to establish the right equilibrium across security, privacy and performance, within a limited IT budget. At the same time, healthcare cloud solutions need to strike a balance between being HIPAA- compliant and secure, as well as flexible and adaptive to technological advancements.

Another major challenge is the absence of on-site experts to provide support for hybrid cloud environments and deployments. However, as technologies improve and real- world examples demonstrate their reliability, cloud computing is on track to become the new norm in health IT infrastructure. Clients are keen on taking advantage of Software as a Service (SaaS) offerings such as Electronic Health Record (EHR) solutions and service desk assistance.

The increased interest in the healthcare cloud has inspired vendors and service providers to strengthen their support for business associate agreements and third-party privacy and security assessments. Healthcare data management includes strict requirements for security, confidentiality, privacy, traceability of access, reversibility of data and long-term preservation. As hospitals and health systems progressively test and decide on ideas and applications that range from patient health applications to Artificial Intelligence (AI), they need a HIPAA-compliant cloud hosting platform to build or test those applications upon. A reliable cloud advisory firm with such capabilities can double up as an integral implementation partner and manage the system on public cloud.


The worldwide public cloud services market is projected to grow 17.5 percent in 2019 to total $214.3 billion, up from $182.4 billion in 2018, according to Gartner, Inc. The fastest- growing market segment will be cloud system infrastructure services, or infrastructure as a service (IaaS), which is forecast to grow 27.5 percent in 2019 to reach $38.9 billion, up from $30.5 billion in 2018 (see Table 1). This is reinforcing for 8K Miles as this is our major focus area for our cloud offerings as our customers continue to work to grow their cloud-based infrastructure. Additionally, Cloud Management and Security Services market segment, which is another 8K Miles focus area, is also showing strong growth projections with estimated additional $1.7B increased spending.

2018 2019 2020 2021 2022
Cloud Business Process Services (BPaaS) 45.8 49.3 53.1 57.0 61.1
Cloud Application Infrastructure Services (PaaS) 15.6 19.0 23.0 27.5 31.8
Cloud Application Services (SaaS) 80.0 94.8 110.5 126.7 143.7
Cloud Management and Security Services 10.5 12.2 14.1 16.0 17.9
Cloud System Infrastructure Services (IaaS) 30.5 38.9 49.1 61.9 76.6
Total Market 182.4 214.3 249.8 289.1 331.2

Worldwide Public Cloud Service Revenue Forecast (Billions of U.S. Dollars) Source: Gartner (April 2019)

BPaaS = business process as a service; IaaS = infrastructure as a service; PaaS = platform as a service; SaaS = software as a service

Shift from Cloud-First to Cloud-Only - According to recent Gartner surveys, more than a third of organizations see cloud investments as a top three investing priority, which is impacting market offerings. Gartner expects that by the end of 2019, more than 30 percent of technology providers new software investments will shift from cloud-first to cloud-only. This means that license-based software consumption will further plummet, while SaaS and subscription-based cloud consumption models continue their rise.

Worldwide spending on public cloud services and infrastructure will more than double over the 2019-2023 forecast period, according to the latest update to the International Data Corporation (IDC) Worldwide Semiannual Public Cloud Services Spending Guide. With a five-year compound annual growth rate (CAGR) of 22.3%, public cloud spending will grow from $229 billion in 2019 to nearly $500 billion in 2023.

Global Healthcare Cloud Spending projection is in line with the projections across all sectors above. According to Global Market Insights Inc., the Global Healthcare Cloud Computing Market is expected to exceed more than US$ 15.50 billion by 2024 and will grow at a CAGR of more than 20% in the given forecast period of 5 years.

Company Overview

8K Miles Software Services Limited (8K Miles) is a leading solution provider in next generation cloud technology. It is a cloud solution specialist in healthcare, life science, finance and other verticals. The Company is the preferred partner for most public cloud providers - Amazon Web Services (AWS), Microsoft Azure (Azure) and Google Cloud - for transformation and managed services in healthcare industry. Its Next Generation Cloud Managed Services are recognized by AWS. Besides, 8K Miles is a Gold-certified cloud partner of Microsoft. The Company and its subsidiaries provide cloud migration advisory and implementation services, DevOps and ongoing upgrades, managed services, big data and analytics, digital transformation and maintenance, cloud solutions for business issues and infrastructure management.

Deep domain expertise, lasting client relationships, industry- specific knowhow, agile innovation and execution, qualified in-house talent and superior quality control form the driving force of the Company. Its products, tools and accelerators include CloudEz, Automaton, 8K Health Edge, DataEz and EzMFA among others in the areas of cloud and digital transformation for healthcare and life science sectors. 8K Miles is a public limited company, incorporated and domiciled in India with a registered office in Chennai, Tamil Nadu.

Key enablers

Platform-centric solutions

The Company has built an extensive portfolio with over a decade of hands-on experience and industry exposure. It comprises one-stop shop platforms that are compatible with the public clouds of AWS, Azure, Google and Oracle. The Company can wholly manage and secure the virtual private clouds of its customers, as well as ensure regulatory compliance.

8K Miles offers high-quality multi-cloud vendor-agnostic solutions to produce faster results and reduce risks at reasonable costs. This is primarily because it easily acquires customers because of the platform centric approach, who subsequently become partner since they seek cost-effective innovations. The Company is able to drive loyalty across its product range since its offerings are fully integrated into customers enterprise IT infrastructure. It is uniquely positioned to provide end-to-end cloud transformation, seamlessly moving its clients to adopt Managed Services.

Next Generation Cloud Managed Services

8K Miles has services that drive both non-recurring and recurring revenue, while ensuring clients have cloud security, regulatory compliance and cloud management/ governance. Most large Indian IT vendors supply staff and services at different hourly rates. However, 8K Miles convinces clients to install its products across their enterprise and enlist its services for years to come by providing superior quality services.

While project-based services drive non-recurring revenue, the Companys state-of-the art Next Generation Managed Services contribute to its recurring revenue. These managed services include cloud competency services, cloud strategy, implementation of latest software development methodologies like DevOps and CI/CD, advanced and smart automation, end-to-end application infrastructure development services and DevOps as a Service.

Strategic partnerships

8K Miles enduring partnerships with public cloud providers is the foundation for its long-term success. The Company primarily engages with its technology partners — who are also its customers — to drive sales. It provides diverse technology services that leads to shared success.

Value-based acquisitions

The Company has acquired several businesses to add expertise, acquire products and expand client base, propelling growth and expanding its product portfolio throughout the last decade. The strategic acquisitions help in access to captive customers and enhance cross- and up-selling that enable 8K Miles platforms to be more robust, while addressing domain-specific compliance and security requirements.

Stellar advisory panel

8K Miles Advisory Board (members listed separately) brings great minds together

• Entrepreneurs, Innovators, Founders, Chairman & CEOs as well as CxOs

• Across many Industries, Technologies as well as Government entities

• Years of global experience

These great minds help accelerate 8K Miles growth by offering many of the following and more:

Market Insights & Needs Industry Expertise

Executive Introductions and Business Development

Validating Business Directions

Strategic Product and Technology Investment


Serve as a Reference for our potential Enterprise Customers

Provide Sales Support

Our strength

We believe our strengths give us the competitive advantage to position ourselves as the leading global solutions and services company.

Sector and domain expertise: Our specific industry expertise in healthcare and life science and technology expertise in secure cloud environment enables us to transform clients business with innovative, secure, reliable and scalable solutions. Our expertise helps our clients enhance their business performance and IT efficiencies, increase agility and flexibility, reduce costs, and achieve measurable business value.

Intellectual property: Our products, platforms and solutions are geared to fulfill and serve the needs of cloud and digital consumers as well as leverage the potential of larger connected ecosystem. Our CloudEz platform is a result of several man- years of cloud consulting and implementation experiences across assignments and organizations of various sizes. It has in-built solutions for significant number of business problems of the clients/ potential clients in highly regulated industry verticals. Our timely acquisition of IPs like EzIAM has strengthened our positioning in the market.

Deep client relationships and cloud-specialists brand: Over last few years, we have been privileged to work with Fortune 500 organizations and several other pharma companies as clients. Our track record in delivering high-quality cloud and business solutions to pharma and healthcare clients has yielded in strong growth trajectory for our top 15 client accounts. Our strong branding in healthcare and life sciences verticals and our close association with technology partners has helped us bolster these relationships and further gain new client logos with each passing quarter. This history of client retention allows us to showcase and strengthen our brand.

Agile execution and DevOps: Our automated tools and accelerators allow us to continuously optimize and enhance already implemented client systems. Our platform creates visual dashboards on real-time basis for ease of decision making by the managers.

High-quality talent: We have a strong ecosystem for employee attraction, competency development, career progression and retention through a trusted partnership with our stakeholders. We have a culture of performance and innovation in an open and collaborative environment.

Financial Performance:

Financial Particulars



Growth Inc / (Dec)%
Rupee in lakhs % of Revenue Rupee in lakhs % of Revenue
Revenue from operations 84,219.15 100.00% 84,923.87 100.00% -0.83%
Employee benefits expense 29,052.51 34.50% 23,557.56 27.74% 23.33%
Finance costs 1,162.49 1.38% 971.49 1.14% 19.66%
Depreciation and amortization expense 6,959.83 8.26% 2,518.68 2.97% 176.33%
Other expenses 38,220.86 45.38% 32,124.52 37.83% 18.98%
Total 75,395.69 89.52% 59,172.25 69.68% 27.42%
Profit before tax 9,642.88 11.45% 26,596.85 31.32% -63.74%
Tax expense 1,660.39 1.97% 6,055.54 7.13% -72.58%
Profit after tax 7,982.49 9.48% 20,541.31 24.19% -61.14%

On consolidated basis, revenue for the year was Rs. 84,219.15 lakhs signifying a decreased of (0.83%) in Rupee terms.

EBITDA margins have decreased by 14.19% from 35.08% in the previous year to 20.89% in the current year. Total employee benefits expenses have increased by 6.76%. Employee benefits expense, as a percentage to revenue, is 34.50% in the previous year to 27.74%. Other expenses increased due to increase in Professional & Consultancy Charges, subcontractor expenses, Travelling expenses, Cloud hosting & Communication expenses and Other expenses.

The effective tax rate is at 17.22% when compared to 22.77% in the previous year. PAT has decreased by 14.71% and as a percentage of revenue, has decreased from 24.19% to 9.48% in the current year.

On standalone basis, revenue for the year was Rs.5,694.44 lakhs signifying a growth of 8.27% in Rupee terms. EBITDA margins have increased from 28.82% in the previous year to 37.09%. The growth in revenue 12.62% was higher than the growth in employee benefits expense 2.69%. Other expenses increased due to Professional & Consultancy Charges, subcontractor expenses, rent, travelling expenses and other expenses. Our effective tax rate is at 28.60% when compared to 32.38% in the previous year. PAT has increased by 99.50% to Rs. 973.23 lakhs as compared to Rs. 487.84 lakhs in the previous year mainly on account of increase in revenue, other income and foreign exchange gain in the current year as compared to forex loss in the previous year.


CloudEz for Continuous Security, Compliance and Governance

Cloud Transformation and Management Platform that facilitates Enterprises to transform and manage the Public Clouds - AWS, Azure, Google and Oracle as well as Private Clouds towards Enterprises having optimum Hybrid Cloud strategy. This platform ensures Continuous Security and Compliance while ensuring Continuous Governance across Public Clouds such as AWS, Azure, Oracle and Google Clouds as well as Clients Private Cloud.

CloudEz platform is a Service Automation Platform that integrates ITSM capabilities such as Service Catalog, Service orchestration and ITIL with Cloud Automation. Service Orchestration and Automation is achieved through the integration between the CloudEz Business Services Engine and an ITSM platform such as ServiceNow.

CloudEz Business Services Operation and Management Portal is an ITSM platform like ServiceNow which manages and enforces the ITIL processes such as incident, change and release management. It also has Service Catalog and Service Orchestration capabilities that allow it to offer Cloud Services in a self-service manner

CloudEz Business Services Engine orchestrates the execution of automation script and makes API calls in order to deploy the Business Service in the Cloud. It has the capability of integrating with various tools and technologies such as Chef, Puppet, Cloud APIs, Document Management Systems etc.

CloudEz platform is built upon a suite of frameworks to securely manage the lifecycle Cloud Services for Health- care/Life Sciences Company:

• Application Automation Framework - Business Services Engine

• Security Framework Portability Framework

• Operations Automation Framework Enterprise Integration Framework Governance Framework


Cloud is treated as a Computing platform and infrastructure as piece of code. Managing such dynamic infrastructures is a huge challenge for enterprises running multiple applications. Once these applications are deployed in the Cloud, there are unique operational challenges such as, continuing to remain secure, continuous monitoring, high availability and disaster recovery. Thousands of configurations and parameters can change in a second in the environment. Such changes can introduce security and optimization loopholes in the cloud infrastructure. Managing these configuration drifts, identifying these loopholes immediately is not possible manually in cloud. This requirement necessitates highly intelligent programs which can detect and fix problems on the cloud every minute.

Automaton is a Cloud Operations engine that is designed and developed to seamlessly work with Amazon Web Services (AWS) to help different domains and businesses to detect and manage security risks of their entire AWS infrastructure. This is achieved via automated threat detection, incident response and compliance through continuous monitoring and analysis of all AWS configuration and usage of metadata logs. Automaton also ensures that the infrastructure on the AWS follow the best practices as per the AWS and community recommendations.

The following section describes the modules and features in the Automaton Operations Engine:

Identifiers: Background Jobs that checks for loopholes in best practices, security, cost optimization, compliance in cloud infrastructure like Amazon Web Services, Azure and Google Cloud every 15 minutes. Identifiers results will be shown in dashboard, including Identifiers results and reports

Rules: Customers can define compliance rules which will be executed by the Rule Engine. Example: Customers can define a rule to fix a security group loophole that is observed by the Identifier module

Fixers: Fixers are intelligent programs that are triggered by events or when rules match a loophole. Pre- approved fixers will automatically fix a problem when it encounters. Manually approved fixers will log the details in the ITSM system and will initiate fixing action based on the user authorization

Traffic Analysis: AWS and Azure generates the traffic information between the Virtual Machines as Flow logs. These flow logs contain information like Source IP, Port, Destination IP, Port, Protocol, Bytes, Count of bytes transferred. Traffic flow analysis module enriches this flow log information with VM and network details and provides real time analysis of the traffic patterns, anomalies and threshold breaches.

Reports: Hourly, daily and weekly consolidated reports of loopholes, fixes and Traffic analysis are generated and sent to customers via email registered.


Identity and Access Management (IAM) has emerged as a critical need for realizing the business benefits in terms of cost savings, management control and operational efficiency. Enterprises need to manage access to information and applications scattered across internal and external application systems. Moreover, they must provide this access for a growing number of identities, both inside and outside the organization, without compromising security or exposing sensitive information.

8K Miles is a leading provider of Cloud based Federated Identity Management Solutions for large distributed enterprises, Government agencies, service and SaaS providers, SMBs and online services. 8K Miles helps enterprises rapidly establish, scale, and manage identity federations. MISP™ (Multi-Domain Identity Services Platform) is a toolkit based on industry standards to setup Federation, on-board partners rapidly and monitor deployments, including risk reduction through real-time compliance certification. This patent- pending platform includes Cloud ID Broker Services™ enables secure Federated Single Sign-On and the sharing of identity information.

MISP™ enables customers to leverage the latest developments in Identity Federation & Identity Management Systems and comply with Security and Governance Policies, through a systematic approach that guarantees interoperability of deployments and management of federations.

The hosting capability will allow the MISPTM to offer a more complete federation service and management offering. Besides the service to help an enterprise partner federation assessment, on-boarding, certification, and monitoring service, the solution will add value to an enterprise federation by providing the last mile integration that the SMBs will need to federate and that otherwise would not be able to participate.

This product is approved by US Patent: MISP: US patent 8,434,129 an abstract of which is given below:

MISP is a method and apparatus to provide identity management deployment interoperability and compliance verification. In one embodiment, the system also provides on-demand services including automated certification, monitoring, alerting, routing, and translation of tokens for federated identity related interactions between multi-domain identity management systems is provided.


Here is a brief overview of Blockchain technology and its benefits as well as the overview of BREMA - Blockchain Records Management, a Platform designed to implement generic Management of any type of Records (financial, health, inventory and etc.)

About Blockchain

Blockchain, invented by Satoshi Nakamoto in 2008, is a shared immutable (tamper-proof) ledger technology network for recording any type oftransactions. Though this technology is applicable across all industry verticals given that every industry deal with a network of participants as well as chain of events, i.e., transactions that needed to be recorded and managed properly, Blockchain became popular with Bit Coin, which is its ultimate use case of Currency Management - aka Cryptocurrency.

Ginni Rometty, CEO of IBM famously said, "What the internet did for communications, blockchain will do for trusted transactions" as the benefits of Blockchain technology across industries - not just Cryptocurrencies - cant be understated.

Why Blockchain? - Key Strengths

In the eco-system of every industry where trusted transactions (orders, payments, accounting, tracking etc.) happen continuously and concurrently, today, each participant is having to maintain his/her own ledger. Thus, everyone is maintaining their own version of truth. This is a recipe for human error, fraud and inefficiencies such as paper-trail processes, audits and time & money spent in addressing discrepancies. The goal is to see a transaction end-to-end and reduce those vulnerabilities for everyone involved in the business network.

How Blockchain Works

The following are the basic aspects of Blockchain transaction management:

• Single shared ledger that is tamper-proof. Once recorded, transactions cannot be altered

• All parties must give consensus before a new transaction is added to the network

• Eliminates or reduces paper processes, speeding up transaction times and increasing efficiencies

As each transaction happens, the details of it will be put in a block. Each block is part of a continuous linked-list, so that each block is connected to the one before it as well as the one after it using the hash computed based on the contents of the block. The process of maintaining and updating the blocks are applied independently across the network of nodes. Thus, the transactions are irreversible and immutable - i.e., tamperproof.

Benefits of Blockchain

Blockchain offers critical benefits to enterprises across the board by offering a distributed, permissioned and secured framework by implementing business processes, i.e., contracts that can be fully or partially executed or enforced without any manual interaction - ‘Smart Contracts aka ‘Chain codes.

This means that enterprises can have a shared system of record across the participants (nodes) in the network, which makes the framework highly scalable yet eliminates the need for maintaining and reconciling disparate ledgers.

In this network, each member of the network has access rights so that confidential information is shared on a need-to-know basis.

Security is inherent as consensus is required from all network members and all validated transactions are permanently recorded. No one, not even a system administrator, can delete.

Given that Blockchain eliminates intermediaries (middle-men / 3rd. parties) and directly enables trust, it allows businesses to come together in new ways, exploit new business models and drive new values, optimize the entire eco-system to improve efficiency and save costs and finally reduce risks by enabling transparency and trust.

BREMA is a generic Transactions or Records Management Platform using the Blockchain technology. More specifically, it uses Linux Foundations Hyper ledger Fabric in conjunction with Hyper ledger Composer with pre-built modules that are standard and must for a typical enterprise grade platform.

This means that enterprises will have an out of the box platform thats ready to model any uses cases thus reducing cost & time necessary to implement a Blockchain based solution.

For example, in the Healthcare vertical, our platform can be integrated with any EHR/EMR solutions such as EPIC, Cerner and Meditech in order to build a platform that will host Electronic Medical Records in Blockchain.

Such platform will not only impact the way hospitals run today, but also enables patients to have direct access to his/ her own medical records - on their mobile phones and tables.

Part of the objectives of BREMA is to also make the Blockchain platform ‘Cloud ready, which means the blockchain network will be ready to operate across the nodes of Cloud based VPCs (Virtual Private Cloud) such that implementors of our platform can go-live almost instantly by simply creating a Cloud agreement with any/all of the major public Cloud vendors such as AWS, Microsoft Azure, Oracle or Google.

In other words, our platform can go-live out of the box without taking any time for physical HW infrastructure.

Having the network of Blockchain nodes run on the Cloud also means effective Big Data, Artificial Intelligence, Machine Learning and Deep Learning capabilities as well.


EzMFA, a Multi-Factor Authentication as a Service offering, is an advanced authentication service for protection of enterprise applications. It uses industry standard technology to sever as a resilient barrier to prevent malicious attempt to access an enterprise application from unauthorized access. The availability of multiple authentication factors and the flexibility to opt for tailor made combination of different authentication services stand as the primary benefit of EzMFA.

8K Miles EzMFA offers a powerful set of mature multi factor authentication for Enterprise applications, hosted in one of the most robust, scalable, and secure infrastructures. Leveraging managed services expertise, our cyber security solution can be extended to support MFA as a Service for Amazon Web Services (AWS).

The following are some of the key benefits of EzMFA

• Since EzMFA is a service, companies can implement the service easily without incurring any infrastructure, personnel, or equipment costs to facilitate MFA to their employees. Opting MFA as a service, will be of immense help to organizations, especially when the employee count is fluctuating constantly.

• By signing up once, the EzMFA service can be extended to protect multiple applications, critical assets and services even if the usage/user context for each of these could be different.

• EzMFA ensures minimized administrative overhead and is PII compliant.

• EzMFA can also be extended to secure any of the AWS Services.

Acquisitions thus far

FuGen Solutions Inc. (May 2013) FuGens acquisition includes its market leading patented Cloud Identity Broker and Multi-domain Identity Services Platform (MISP™), an on-demand partner onboarding platform that extends the capabilities of existing Identity Management (IDM), SSO solutions and legacy services to allow enterprise customers and their partners to establish, scale and manage their federated access, certification and SSO, and web services via the cloud. The platform is complementary to 8K Miles public cloud expertise, serving as an added layer of security, while streamlining authentication and enabling secure single sign- on access across multiple cloud-based business systems.

SERJ Solutions (November 2014), a provider of innovative Epic EHR consulting, custom application development, and support solutions for the Healthcare market. This move solidifies 8K Miles goal to offer a unique and differentiated cloud-managed solution to the Healthcare sector. By leveraging its expertise in cloud solutions, 8K Miles hopes to help hospitals and healthcare providers by providing the industrys first truly end to end Software as a Service (SaaS) technology platform.

Mindprint Inc. (March 2015) specializes in providing SaaS analytics and operational software to Clinical Research

Organizations and Pharmaceutical companies based in Markham, Ontario, Canada. Mindprint brings clarity and transparency to its clients as they benefit from increased profitability, better predictability, streamlined business processes, and superior customer value. Mindprint has partnered with a number of leading CROs and understands the life cycle of a clinical study as well as the business challenges unique to the life sciences industry.

Cintel Systems, Inc. (April 2015) is a leading IT development and services company based in Pleasanton, California, and one of the fast-growing UI and UX design firms in the USA, with more than 7 years of experience creating highly usable and intuitive designs for enterprise customers. Cintel offers UI design and UX development, Mobile Application Development services for a range of key verticals such as Banking & Financial Services, Insurance & Health care, Hi-Tech, Education, Retail and Manufacturing. Cintels customers includes SaaS and Cloud applications providers which requires a great look and feel in addition to value added features to attract any type of enterprise users.

NexAge Technologies USA Inc. (September 2015) is an

East Coast based company with deep domain expertise in Regulatory Compliance and proprietary IT solutions for the US Life Sciences Industry. The companys 15-year track record in the areas of Computer Systems Validation, Quality Review, Vendor Audits, Data Analysis and Migration, Analytics, Change Management, and Governance has earned it expertise, unique insights, wide collaborative partner networks, and industry-wide respect.

Cornerstone Advisors Group (May 2017) is a national Health Information Technology professional services firm based in Georgetown, Connecticut. Cornerstone Advisors provides a higher-level of Information Technology Advisory Services and Implementation Expertise to the healthcare industry. Inspired by trusted relationships, Cornerstone Advisors partners with every client to drive change, add-value, and maximize the return of their Health Information Technology investment.

(Amount Rs. in Lakhs)


Under IND AS

Under US/Indian GAAP





Cost NBV Cost NBV Cost NBV Cost NBV
Capitalized Software
Cloud Ez 34,421.92 29,466.60 10,399.92 8,255.73 34,421.92 29,466.60 10,399.92 8,255.73
EzIAM 6,283.77 4,045.33 5,875.85 4,728.40 6,283.77 4,045.33 5,875.85 4,728.40
BREMA 9,379.00 8,170.40 5,367.10 5,367.10 9,379.00 8,170.40 5,367.10 5,367.10
Automaton 5,338.10 5,114.54 - - 5,338.10 5,114.54 - -
Total 55,422.78 46,796.87 21,642.87 18,351.22 55,422.78 46,796.87 21,642.87 18,351.22
Patents / Trademark 486.33 206.93 454.76 241.87 486.33 206.93 454.76 241.87
Intangibles Due to Acquisitions
FuGen Technologies Inc 4,932.42 4,932.42 4,612.22 4,612.22 4,932.42 3,822.95 4,612.22 3,574.78
Serj Solutions Inc 1,733.00 1,733.00 1,620.50 1,620.50 1,733.00 1,384.20 1,620.50 1,294.35
Cintel Systems Inc 2,495.52 2,495.52 2,333.52 2,333.52 2,495.52 1,996.58 2,333.52 1,866.97
Mindprint Inc 242.62 242.62 226.87 226.87 242.62 194.11 226.87 181.51
Corner Stone Advisors Inc 4,753.58 3,835.64 4,437.68 3,996.93 4,753.58 3,835.64 4,437.68 3,996.93
8K Miles Inc 740.00 - 740.00 - 740.00 - 740.00 -
Total 14,897.13 13,239.20 13,970.79 12,790.04 14,897.13 11,233.50 13,970.79 10,914.54
FuGen Technologies Inc 346.60 346.60 324.10 324.10 346.60 346.60 324.10 324.10
Serj Solutions Inc 105.49 105.49 98.64 98.64 105.49 105.49 98.64 98.64
Cintel Systems Inc 103.98 103.98 97.23 97.23 103.98 103.98 97.23 97.23
Mindprint Inc 34.66 34.66 32.41 32.41 34.66 34.66 32.41 32.41
NexAge Technologies Inc., USA 1,040.13 1,040.13 972.61 972.61 1,040.13 1,040.13 972.61 972.61
Corner Stone Advisors Inc 926.25 926.25 866.12 866.12 926.25 926.25 866.12 866.12
Total 2,557.11 2,557.11 2,391.11 2,391.11 2,557.11 2,557.11 2,391.11 2,391.11
Product Under Development (Not Capitalized yet) - - 2,795.68 2,795.68 - - 2,795.68 2,785.68
73,363.36 62,800.11 41,255.21 36,569.92 73,363.36 60,794.40 41,255.21 34,684.42


1. Capitalized Software and Patent/Trademark are amortized over a period of 5 years (PY - 6 years)

2. Intangibles due to Acq. Of Cornerstone are amortised as (a) Trademark - 10 Years (b) Customer Relationship - 10 Years (c) Non Compete - 5 Years

3. Intangible due to Acquisitions are amortised over a period of 5 years (PY 15 Years) per US GAAP and are not NOT Amortised under IND AS

4. Acquisition of 8K Miles Inc. by Standalone entity are amortized fully

5. Goodwill due to acquisitions of businessess and are not amortized as per Accounting Standards.


1. Execution risk: While fixed price contracts offer an opportunity to add better margins in IP/ non-linear execution model, they also expose us to execution risk in remote scenarios of any inability to adhere to delivery or quality SLA. Your Company has made significant investments in its platform (IP).

2. Employee related risk: Employee attrition and/ or constraints in the availability of skilled human resources could pose a challenge for any services company. Your Company has kept its human capital at the center and has initiated multiple steps for overall development of its employees. We encourage entrepreneurship culture within organization and offer new challenges and opportunities for our employees. We have made significant investments in our recruitment and training procedures.

3. M&A execution risk: Your Company has been acquisitive in past when comes to acquisition of capabilities at right price. We believe in reducing our time to tap opportunity offered in this age of IT transformation but at the same time, we have put in place stringent evaluation criteria, diligence parameters and high standard of corporate governance practices for any target opportunity to cross the line. We have senior management team and independent board of advisors to monitor the progress of each opportunity pre-and post-closure.

4. Exchange rate risk: Given that the Companys revenues are largely denominated in US dollars and fluctuations in foreign currency exchange rates could have an impact on companys earnings.

5. Investment risk: The strength of your company is IP developed over years of research and development.

We expense the costs that is unlikely to yield significant results in future, in the year of accrual. We conduct regular impairment test of all intangible assets created either by way of internal Research and Development (R&D) and/ or assets acquired through acquisitions.

Our strategy

Our strategic objective is to remain relevant for our clients and to generate profitable growth for our all stakeholders. We shall continue to invest in people, processes, tools and operations. Our focus on innovation and shorter time to market has differentiated us from competition and these would continue to be core pillars of growth and of profitability.

Alliances and Partnerships

• Infrastructure: AWS, Azure, Google Cloud Services, IBM Smart Cloud and VMWare

• Security: CA, ForgeRock, Sophos, Trend Micro, Gemalto, IBM Security, New Relic

• Operations: ServiceNow, Splunk, DataDog, Cloud Checker

Human Resources

8K Miles business performance relies, first and foremost, on its employees. Talent and development activities are aligned to three priorities: building leadership capabilities and developing future leaders; fostering an environment that supports sustainable performance; and promoting continual professional and personal development for all employees. It is therefore important to attracting the right talent with right skillsets.

We recruit the best talent from top institutions like NIT and best engineering and business schools. We have hired over 30% of our last year recruits through campus to nurture and grow leaders internally. As an equal opportunity employer, our women employees form 18% of our strength.

The ‘Mitr - My Friend employee referral program ensures that current employees contribute positively to building our Human Capital by referring their friends to the Company.

First Mile

Our on-boarding program is rightly named ‘First Mile, with our focus moving towards campus recruitment, we at 8K Miles take all care to ensure that the new employee joining the company is comfortably and properly aligned within the organization as well as the functional role. First Mile includes interaction with key business leaders. The campus recruits are offered improved career opportunities and flexibility, a key factor determining 8K Miless overall ability to retain people with the requisite skills.

The SBU/Department heads take special care to ensure that there is a seamless acquaintance within teams and the new employees have a clear roadmap of the way ahead.


Reflecting on 8K Miless technological transformation, strategic objectives and changing demands from the client, it is continuously developing its employer brand. This includes positioning the organization as an employer of choice. Our Systematic Training for Effective Programing ‘STEP is an integral part of our continuous learning and Knowledge Management System (KMS) - an invaluable repository of training material in various technologies.

Any employee can access the internal STEP portal and learn from the vast knowledge database, that continues to keep getting updated. To further ensure that continuous learning and knowledge development, all employees undergo a 3-month online project and training program. Further, employees are encouraged to get more professional certifications in areas like AWS, Azure, IAM, Big-Data Analytics where they specialize. We are proud to state that nearly 70% of our technical staff hold professional certification.

One key aspect of ensuring continuous learning at 8K Miles is the weekly meetings called WWW2 - What Worked Well and What Went Wrong. This one-hour interactive knowledgesharing session ensures that project experiences are shared by cross-function teams.


Based on the belief that ‘More than coding, Hacking is the way of learning, we hold quarterly competitions to build foolproof applications on given topics.

Reward and Recognition

One of the distinguishing factors for any performing organization is its rewards package. We have one of the best compensation packages in the industry backed that is constantly aligned to match the industry. Further with an objective Performance Management System that rewards outstanding performers.

We have the following rewards:

• Miler of the Year

• Team of the Quarter

• Milestone Awards

Other People Initiatives @ 8K Miles Technopreneur@8K Miles

The strength of any technically oriented organization is in developing innovative and effective solutions that meet the customer needs. Technopreneur@8K Miles enables independent thinkers who are given their time and space to ideate and create new and groundbreaking ideas.


To groom future leaders, each employee is assigned a senior management mentor who nurture them to be leaders of the future.


A social initiative driven employee group that undertakes socially helpful projects that bring smile to the people.


These fun-filled evenings are regularly organized to relieve the stress of employees, and more importantly, ensure that they have fun at work.

Internal Control Systems And Adequacy Of Internal Financial Controls

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The Audit committee defines the scope and authority of the Internal Auditor. The Audit Committee comprises of professionally qualified Directors, who interact with the statutory auditors, internal auditors and management in dealing with matters within its terms of reference.

The Company has a proper and adequate system of internal controls. Adequate internal controls ensure transactions are authorized, recorded and reported correctly and assets are safeguarded and protected against loss from unauthorized use or disposition. In addition, there are operational controls and fraud risk controls, covering the entire spectrum of internal financial controls. An extensive program of internal audits and management reviews supplements the process of internal financial control framework. Documented policies, guidelines and procedures are in place for effective management of internal financial controls.

However, the company is periodically reviewing the Internal Financial Controls and takes requisite measures to strenghthen the control aspects from time to time. The management affirms that this is an ongoing process to improve the controls regularly.